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Which of the following does not need to be taken explicitly into account when using option pricing methods to analyze default risk on a corporate
Which of the following does not need to be taken explicitly into account when using option pricing methods to analyze default risk on a corporate bond?
a. The volatility of the firms assets.
b. The volatility of a firms stock price.
c. The amount of leverage the firm is using.
d. The maturity of the debt.
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